Listed firm’s pension scheme bought out by specialist insurer
Around 2,000 pensions amounting to £210m at AIM-listed 600 Group have been bought out by a specialist insurer.
The engineering group has announced that the Trustee of its UK defined benefits scheme has agreed to a buyout of the scheme liabilities by Pension Insurance Corporation, a specialist insurer.
Agreement has been reached for the pension scheme liabilities of £201m covering some 2,000 pensioners and 800 deferred members to be entirely transferred to Pension Insurance Corporation.
Once the buy out is completed and the scheme is wound up, all surplus funds remaining will be returned to the 600 Group less a statutory 35% tax charge. The total net amount payable to the company is currently estimated to be between £3m and £4m.
Paul Dupee, executive chairman of The 600 Group, said: “For some time the Trustee of our UK Pension Fund and the Company have been working towards a permanent transfer of future liability to achieve two goals: firstly, to better secure the benefits to be paid to the pensioners and fund members; and secondly to relieve the Company of the disproportionate liability of such a large scheme.
“Today’s agreement with Pension Insurance Corporation plc meets both of these important criteria. On completion the Company will have significantly greater liquidity, financial flexibility and been relieved of potential regulatory constraints while at the same time affording our pensioners and fund members the comfort of having a successful multi billion pound specialist organisation to fulfil the pension scheme’s future obligations.”